Aggregate demand and the Phillips curve
Many macroeconomic models are based on a view of aggregate demand based on the Euler equation, and on a view of aggregate supply based on the Phillips curve (linked to nominal rigidities). François Geerolf shows that neither of those two receive much validation in the light of macroeconomic evidence. For aggregate demand, income effects going through adjustable rate mortgages and loans are much more important than substitution effects, either for consumption or investment. On the aggregate supply side, the Phillips curve was never observed outside of fixed exchange rates, and there appears to be no trade-off between inflation and unemployment under flexible exchange rates.

About the speaker:

François Geerolf is an Economist at OFCE, an Associate Professor at Sciences Po, as well as a CEPR research Fellow. He has been an Assistant Professor at UCLA, a Visiting Scholar at MIT, and a Visiting Fellow at Harvard University. He holds a PhD from Sciences Po, an engineering degree from Ecole Polytechnique and Ecole des Ponts, and a MSc from the Paris School of Economics. He was the recipient of the Top Finance Graduate Award awarded from the Copenhagen Business School. François works on macroeconomics and financial economics.
Date: 8 November 2023, 14:30 (Wednesday, 5th week, Michaelmas 2023)
Venue: Manor Road Building, Manor Road OX1 3UQ
Venue Details: Seminar Room G and online via Zoom
Speaker: Francois Geerolf (Sciences Po)
Organising department: Institute for New Economic Thinking
Organisers: Dorothy Nicholas (INET Oxford), Francois Lafond (INET Oxford)
Organiser contact email address: complexity@inet.ox.ac.uk
Host: Prof. Doyne Farmer
Part of: INET Complexity Economics Seminars
Booking required?: Required
Booking url: https://www.inet.ox.ac.uk/events/aggregate-demand-and-the-phillips-curve-fran%C3%A7ois-geerolf-sciences-po/
Audience: Public
Editor: Dorothy Nicholas